Despite growing revenues, increasing operational costs dragged down profits at Potbelly Corp. during the third quarter ended Sept. 27.
Net income for the sandwich company fell to $1.4 million, from $1.9 million during the year ago quarter, on total revenues that grew 13.4 percent, to $277.8 million, the company said Tuesday.
Comp sales at Potbelly’s company-owned units increased 3.7 percent during Q3.
“We are focused on driving flow-through of our positive top-line growth to the bottom line,” CEO Aylwin Lewis said in a statement, noting that the company is “pleased” with its revenue and comps gains. “We remain committed to our long-term goals and confident in the fundamentals of the business.”
Chicago-based Potbelly is pushing forward with plans for expansion, Lewis noted, having opened 13 new units during Q3. In addition, he said the company was approved to enter the California market on a franchise-only basis “over time.”